CHI's operating loss shrinks as cost-cutting efforts take hold

Ayla Ellison -

Englewood, Colo.-based Catholic Health Initiatives saw its operating loss shrink in fiscal year 2018 as it benefited from revenue cycle improvement initiatives and kept expenses in check.

CHI's operating revenues declined 0.4 percent year over year to $15 billion in fiscal 2018. However, the health system's expenses before restructuring also declined about 1 percent during the most recent fiscal year.

After factoring in restructuring, impairment and other one-time costs, the system ended fiscal year 2018 with an operating loss of $276.7 million, compared to an operating loss of $593.4 million in the year prior.

CHI saw patient volume drop year over year, with declines in acute admissions, emergency room visits, and inpatient and outpatient surgeries. However, physician visits increased during the most recent fiscal year.  

"Although volume declines were experienced in most regions and are reflective of industry trends, the revenue cycle improvements and cost reductions more than mitigated this impact," CHI said in its annual report. 

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